M5: Quizzes Flashcards
The DOL can assess penalties on plan sponsors up to __ per annual Form 5500 report filing where the required auditor report is missing or deficient.
A. $60,000
B. $40,000
C. $35,000
D. $50,000
Answer: D. $50,000
Study Guide, Module 5, Pg. 10, Learning Outcome 2.1
Textbook, Pg.187
The types of deficiencies and weaknesses that auditors commonly communicate to management include of the following, EXCEPT:
A. Internal plan processes
B. Regulatory requirements
C. Audit costs
D. Outside service providers
Answer: C. Audit costs
Study Guide, Module 5, Pg. 19, Learning Outcome 4.5
Textbook, Pg. 206
FASB ASC Topic ______ Plan Accounting-Defined Benefit Pension Plans, establishes the accounting and financial reporting standards for defined benefit retirement plans.
A. 965
B. 962
C. 960
D. 961
C. 960
Study Guide, Pg. 7, Learning Outcome 1.2 (1); Text, Pgs. 179-180
The DOL can assess penalties on plan sponsors up to _______ per day (capped at $50,000 per annual Form 5500 report filing) where the required auditor report is missing or deficient.
A. $900
B. $1,000
C. $1,200
D. $1,100
D. $1,100
Study Guide, Pg. 10, Learning Outcome 2.1; Text, Pg. 187
A plan administrator _______ have the right to examine an auditor’s work papers for any purpose, including to assess audit quality.
A. does
B. does not
C. may
D. may not
B. does not
Study Guide, Pg. 12, Learning Outcome 2.9; Text, Pg. 193
FASB ASC Topic ______, Plan Accounting - Health and Welfare Benefit Plans, provides the accounting and financial reporting standards for health and welfare benefit plans.
A. 962
B. 963
C. 960
D. 965
D. 965
Study Guide, Pg. 7, Learning Outcome 1.2; Text, Pg. 179-180
A is a written communication
intended for plan management and those charged with governance.
A. management letter
B. management comments letter
C. governance letter
D. plan management letter
B. management comments letter
Study Guide, Pg. 18, Learning Outcome 4.4; Text, Pg. 205
There are ______ common types of deficiencies and weaknesses that auditors communicate to management.
A. two
B. five
C. three
D. four
C. three
Study Guide, Pg. 18, Learning Outcome 4.3; Text, Pg. 205
In _______, the Financial Accounting Standards Board (FASB) launched the FASB Accounting Standards Codification (ASC), as the single source of authoritative, non- governmental, generally accepted accounting principles (GAAP).
A. 2011
B. 2010
C. 2008
D. 2009
D. 2009
Study guide Pg. 1. Overview
All pension plans that issue financial statements in conformity with GAAP, including plans with fewer than participants, are covered by ASC Topic 960.
A. 50
B. 200
C. 100
D. 75
C. 100
Study Guide, Pg. 7, Learning Outcome 1.4; Text, Pg. 180-181
Plan investments should be presented at their _______ value, except for insurance contracts, which should be presented in the same manner as required for filing under ERISA.
A. actuarial
B. fair
C. net
D. original
B. fair
Study Guide, Pg. 8, Learning Outcome 1.5; Text, Pg. 181
The 2014 DOL audit quality study showed that nearly four out of ten employee benefit plan audits had _______ deficiencies that adversely affected overall quality and that the remaining plan audits either complied with professional
auditing standards or had minor deficiencies.
A. Acceptable-minor
B. Unacceptable-major
C. Unacceptable-minor
D. Acceptable-major
B. Unacceptable-major
Study Guide, Pg. 11, Learning Outcome 2.2; Text, Pg. 188
FASB ASC Topic 960 is generally not consistent with the views of the U.S. Department of Labor and the American Academy of Acturaries.
True or False?
False
ASC Topic 960 is generally consistent with the views of the U.S. Department of Labor (DOL) and the American Academy of Acturaries (the Academy).
M5 pg 181
Accounting, operations and upper management tend to be the most frequent departments where fraudulent activity occurs.
True or False?
TRUE
ASC 965 Provides the accounting and financial reporting standards for defined contribution retirement plans.
True or False?
False
ASC 965 provides the accounting and financial reporting standards for Health and Welfare Benefit Plans
M5 pg 180